Correlation Between ATEX Resources and Alphamin Res

Can any of the company-specific risk be diversified away by investing in both ATEX Resources and Alphamin Res at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ATEX Resources and Alphamin Res into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ATEX Resources and Alphamin Res, you can compare the effects of market volatilities on ATEX Resources and Alphamin Res and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in ATEX Resources with a short position of Alphamin Res. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATEX Resources and Alphamin Res.

Diversification Opportunities for ATEX Resources and Alphamin Res

-0.35

Correlation Coefficient

ATEX Resources  Alphamin Res

Very good diversification

The 3 months correlation between ATEX and Alphamin is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding ATEX Resources and Alphamin Res in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphamin Res and ATEX Resources is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on ATEX Resources are associated (or correlated) with Alphamin Res. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphamin Res has no effect on the direction of ATEX Resources i.e., ATEX Resources and Alphamin Res go up and down completely randomly.

Pair Corralation between ATEX Resources and Alphamin Res

Assuming the 90 days horizon ATEX Resources is expected to generate 10.65 times less return on investment than Alphamin Res. In addition to that, ATEX Resources is 1.05 times more volatile than Alphamin Res. It trades about 0.01 of its total potential returns per unit of risk. Alphamin Res is currently generating about 0.09 per unit of volatility. If you would invest  87.00  in Alphamin Res on April 24, 2025 and sell it today you would earn a total of  13.00  from holding Alphamin Res or generate 14.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

ATEX Resources  vs.  Alphamin Res

ATEX Resources

Risk-Adjusted Performance

Very Weak

Over the last 90 days ATEX Resources has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, ATEX Resources is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Alphamin Res

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Alphamin Res are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Alphamin Res showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ATEX Resources and Alphamin Res

The main advantage of trading using opposite ATEX Resources and Alphamin Res positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATEX Resources position performs unexpectedly, Alphamin Res can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Alphamin Res will offset losses from the drop in Alphamin Res' long position.

The idea behind ATEX Resources and Alphamin Res pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.